AVANTOR INC (AVTR) Stock Fundamental Analysis
NYSE:AVTR - New York Stock Exchange, Inc. - US05352A1007 - Common Stock
Overall AVTR gets a fundamental rating of 4 out of 10. We evaluated AVTR against 56 industry peers in the Life Sciences Tools & Services industry. There are concerns on the financial health of AVTR while its profitability can be described as average. AVTR is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AVTR was profitable.
AVTR had a positive operating cash flow in the past year.
Of the past 5 years AVTR 4 years were profitable.
AVTR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of AVTR (2.41%) is better than 73.21% of its industry peers.
AVTR has a better Return On Equity (5.58%) than 76.79% of its industry peers.
AVTR has a better Return On Invested Capital (4.46%) than 71.43% of its industry peers.
AVTR had an Average Return On Invested Capital over the past 3 years of 6.66%. This is below the industry average of 9.93%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.41% | ||
| ROE | 5.58% | ||
| ROIC | 4.46% |
ROA(3y)3.68%
ROA(5y)1.63%
ROE(3y)10.62%
ROE(5y)4.04%
ROIC(3y)6.66%
ROIC(5y)6.37%
1.3 Margins
AVTR has a better Profit Margin (4.54%) than 71.43% of its industry peers.
In the last couple of years the Profit Margin of AVTR has grown nicely.
AVTR's Operating Margin of 9.24% is fine compared to the rest of the industry. AVTR outperforms 69.64% of its industry peers.
AVTR's Operating Margin has improved in the last couple of years.
AVTR's Gross Margin of 33.53% is on the low side compared to the rest of the industry. AVTR is outperformed by 66.07% of its industry peers.
In the last couple of years the Gross Margin of AVTR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.24% | ||
| PM (TTM) | 4.54% | ||
| GM | 33.53% |
OM growth 3Y4.11%
OM growth 5Y8.45%
PM growth 3Y78.28%
PM growth 5YN/A
GM growth 3Y1.4%
GM growth 5Y1.8%
2. Health
2.1 Basic Checks
AVTR has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
AVTR has more shares outstanding than it did 1 year ago.
The number of shares outstanding for AVTR has been increased compared to 5 years ago.
Compared to 1 year ago, AVTR has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.20 indicates that AVTR is not a great score, but indicates only limited risk for bankruptcy at the moment.
AVTR has a Altman-Z score (2.20) which is in line with its industry peers.
The Debt to FCF ratio of AVTR is 6.59, which is on the high side as it means it would take AVTR, 6.59 years of fcf income to pay off all of its debts.
AVTR has a Debt to FCF ratio of 6.59. This is in the better half of the industry: AVTR outperforms 62.50% of its industry peers.
A Debt/Equity ratio of 0.84 indicates that AVTR is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.84, AVTR is not doing good in the industry: 73.21% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 6.59 | ||
| Altman-Z | 2.2 |
ROIC/WACC0.45
WACC9.99%
2.3 Liquidity
AVTR has a Current Ratio of 1.54. This is a normal value and indicates that AVTR is financially healthy and should not expect problems in meeting its short term obligations.
AVTR has a worse Current ratio (1.54) than 73.21% of its industry peers.
A Quick Ratio of 1.06 indicates that AVTR should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.06, AVTR is doing worse than 76.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.06 |
3. Growth
3.1 Past
AVTR shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.04%.
The Earnings Per Share has been growing slightly by 6.33% on average over the past years.
AVTR shows a decrease in Revenue. In the last year, the revenue decreased by -3.12%.
Measured over the past years, AVTR shows a small growth in Revenue. The Revenue has been growing by 3.51% on average per year.
EPS 1Y (TTM)-14.04%
EPS 3Y6.33%
EPS 5YN/A
EPS Q2Q%4%
Revenue 1Y (TTM)-3.12%
Revenue growth 3Y2.91%
Revenue growth 5Y3.51%
Sales Q2Q%-0.34%
3.2 Future
AVTR is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.68% yearly.
Based on estimates for the next years, AVTR will show a small growth in Revenue. The Revenue will grow by 3.86% on average per year.
EPS Next Y-6.37%
EPS Next 2Y3.49%
EPS Next 3Y7.22%
EPS Next 5Y9.68%
Revenue Next Year-1.93%
Revenue Next 2Y-0.5%
Revenue Next 3Y1.43%
Revenue Next 5Y3.86%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 22.21, AVTR is valued on the expensive side.
Based on the Price/Earnings ratio, AVTR is valued cheaper than 91.07% of the companies in the same industry.
AVTR is valuated rather cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 19.00, the valuation of AVTR can be described as rather expensive.
Based on the Price/Forward Earnings ratio, AVTR is valued cheaper than 87.50% of the companies in the same industry.
AVTR's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.21 | ||
| Fwd PE | 19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AVTR is valued cheaper than 91.07% of the companies in the same industry.
91.07% of the companies in the same industry are more expensive than AVTR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.83 | ||
| EV/EBITDA | 19.01 |
4.3 Compensation for Growth
AVTR has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y3.49%
EPS Next 3Y7.22%
5. Dividend
5.1 Amount
AVTR does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
AVANTOR INC
NYSE:AVTR (1/21/2025, 8:04:00 PM)
After market: 21.77 0 (0%)21.77
-0.34 (-1.54%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryLife Sciences Tools & Services
Earnings (Last)
Earnings (Next)
Inst Owners95.7%
Inst Owner Change0.03%
Ins Owners1.2%
Ins Owner Change-0.34%
Market Cap14.82B
Analysts78
Price Target27.19 (24.9%)
Short Float %4.5%
Short Ratio5.17
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.92%
Min EPS beat(2)0.56%
Max EPS beat(2)5.29%
EPS beat(4)4
Avg EPS beat(4)5.6%
Min EPS beat(4)0.56%
Max EPS beat(4)10.08%
EPS beat(8)5
Avg EPS beat(8)2.01%
EPS beat(12)8
Avg EPS beat(12)2.13%
EPS beat(16)12
Avg EPS beat(16)4.96%
Revenue beat(2)0
Avg Revenue beat(2)-2.28%
Min Revenue beat(2)-2.59%
Max Revenue beat(2)-1.97%
Revenue beat(4)0
Avg Revenue beat(4)-1.81%
Min Revenue beat(4)-2.59%
Max Revenue beat(4)-0.59%
Revenue beat(8)0
Avg Revenue beat(8)-2.07%
Revenue beat(12)0
Avg Revenue beat(12)-2.22%
Revenue beat(16)3
Avg Revenue beat(16)-1.02%
PT rev (1m)0.25%
PT rev (3m)-4.61%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.86%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.36%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-1.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.21 | ||
| Fwd PE | 19 | ||
| P/S | 2.17 | ||
| P/FCF | 19.83 | ||
| P/OCF | 16.12 | ||
| P/B | 2.67 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.01 |
EPS(TTM)0.98
EY4.5%
EPS(NY)1.15
Fwd EY5.26%
FCF(TTM)1.1
FCFY5.04%
OCF(TTM)1.35
OCFY6.2%
SpS10.02
BVpS8.16
TBVpS-5.35
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.41% | ||
| ROE | 5.58% | ||
| ROCE | 5.62% | ||
| ROIC | 4.46% | ||
| ROICexc | 4.58% | ||
| ROICexgc | 28.89% | ||
| OM | 9.24% | ||
| PM (TTM) | 4.54% | ||
| GM | 33.53% | ||
| FCFM | 10.96% |
ROA(3y)3.68%
ROA(5y)1.63%
ROE(3y)10.62%
ROE(5y)4.04%
ROIC(3y)6.66%
ROIC(5y)6.37%
ROICexc(3y)6.84%
ROICexc(5y)6.54%
ROICexgc(3y)47.27%
ROICexgc(5y)42.15%
ROCE(3y)8.38%
ROCE(5y)8.01%
ROICexcg growth 3Y1.28%
ROICexcg growth 5Y5.6%
ROICexc growth 3Y-2.83%
ROICexc growth 5Y6.5%
OM growth 3Y4.11%
OM growth 5Y8.45%
PM growth 3Y78.28%
PM growth 5YN/A
GM growth 3Y1.4%
GM growth 5Y1.8%
F-Score5
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 6.59 | ||
| Debt/EBITDA | 4.53 | ||
| Cap/Depr | 42.42% | ||
| Cap/Sales | 2.52% | ||
| Interest Coverage | 2.72 | ||
| Cash Conversion | 88.78% | ||
| Profit Quality | 241.34% | ||
| Current Ratio | 1.54 | ||
| Quick Ratio | 1.06 | ||
| Altman-Z | 2.2 |
F-Score5
WACC9.99%
ROIC/WACC0.45
Cap/Depr(3y)32.86%
Cap/Depr(5y)25.42%
Cap/Sales(3y)1.79%
Cap/Sales(5y)1.44%
Profit Quality(3y)166.14%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-14.04%
EPS 3Y6.33%
EPS 5YN/A
EPS Q2Q%4%
EPS Next Y-6.37%
EPS Next 2Y3.49%
EPS Next 3Y7.22%
EPS Next 5Y9.68%
Revenue 1Y (TTM)-3.12%
Revenue growth 3Y2.91%
Revenue growth 5Y3.51%
Sales Q2Q%-0.34%
Revenue Next Year-1.93%
Revenue Next 2Y-0.5%
Revenue Next 3Y1.43%
Revenue Next 5Y3.86%
EBIT growth 1Y-31.94%
EBIT growth 3Y7.14%
EBIT growth 5Y12.26%
EBIT Next Year0.91%
EBIT Next 3Y5.62%
EBIT Next 5Y7.4%
FCF growth 1Y-6.51%
FCF growth 3Y-5.89%
FCF growth 5Y34.76%
OCF growth 1Y-2.12%
OCF growth 3Y-2.19%
OCF growth 5Y34.12%